LeoVegas Smashes It With 41% Revenue Rise

LeoVegas posts strong 41% rise in year-on-year profits to €78.6m for Q3.

LeoVegas has posted a 41% year-on-year increase in revenues to €78.6m ($90.3m) for Q3.

Key figures for Q3

  • Revenue increased by 41% to €78.6 m
  • Organic growth in local currencies excluding markets closed in 2017 was 14%
  • EBITDA was €9.0m, corresponding to an EBITDA margin of 11.4%
  • Net Gaming Revenue (NGR) from regulated markets was 35.5% of total NGR
  • The number of depositing customers was 318,189, an increase of 57%
  • Earnings per share before and after dilution were €0.13

The quarter also saw LeoVegas launch BetUK, acquire 51% of esports betting operator pixel.bet, launch log-in and registration using BankID e-identification and immediate payouts, sign an agreement with the UK’s largest land-based casino (through subsidiary Authentic Gaming), and receive a B2B license from the UKGC.

Though the firm’s financial results were extremely positive, and despite the considerable progress achieved during the third quarter, LeoVegas Co-founder and CEO Gustaf Hagman said:

“Despite the important improvement efforts, we are not satisfied with our growth or profitability during the third quarter. Our work with compliance has mainly affected our near-term growth in our two largest markets, the UK and Sweden.”

He went on to point out that LeoVegas had taken a lead anti-money laundering processes, employing enhanced SOI (source of income) routines, particularly in Sweden, but also noted that the company’s pursuit of compliance had had a “negative impact on the customer experience.”

October’s NGR of €26.6m, which equates to a 29% growth, bodes well for Q4’s results, and Hagman noted that in the UK the firm enjoyed good open communication with the UKGC and “had begun to see a return to positive trends.”

All eyes are still on January 2019 as LeoVegas’ home market of Sweden re-regulates, and the operator still believes that its targets of €600m revenue and €100 EBITDA are still realistic for 2020, despite the severity of challenges it faces.

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